CapRateCity · Vol. II No. 32Established 2025775 US Markets Tracked
CapRateCity
An independent investor's notebook on US rental markets.

3% – 4% Cap Rate Cities

By Jake McEwen · Updated · 227 cities in this tier

Cities with cap rates between 3-4% — lower cash flow markets that typically compensate with stronger appreciation and tenant quality. We track 227 cities in this range.

Above 8%7% – 8%6% – 7%5% – 6%4% – 5%3% – 4%Below 3%
3.4%
Avg Cap Rate
$332K
Avg Price
$1,535/mo
Avg Rent
227
Cities

Understanding 3% – 4% Cap Rate Markets

Cities in the 3% – 4% cap rate range represent appreciation-focused markets where cash flow is secondary to equity growth. The 227 cities in this tier have an average home price of $332K and average rents of $1,535/mo. Prices are 0% below the national average — lower entry points mean less capital at risk and higher potential yields.

The top performer in this tier is Lansing, MI with a 4.0% cap rate at $240K. The most affordable entry is Carbondale, IL at $150K. For growth, Spring Hill, TN leads with 4.5% annual population growth.

Property taxes average 1.1% in this tier, in line with the 1.08% national average. Vacancy rates average 5.5%, and population growth averages 0.94% annually. Positive growth supports sustained rental demand and long-term appreciation.

Below 4% cap rates, the investment thesis shifts to appreciation and equity growth. If you invest in this tier, ensure you can sustain negative or minimal cash flow, or use strategies like house hacking to make the numbers work.

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How This Tier Compares

Tier
Cities
Avg Cap Rate
Avg Price
3% – 4% (this tier)
227
3.4%
$332K
5% – 6%
85
5.5%
$208K
4% – 5%
157
4.4%
$260K
Below 3%
243
2.4%
$470K

All 227 Cities (3% – 4%)

1
Lansing, MI4.0% cap rate
$240K median$1,330/mo rent1.42% tax0.3% growth
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2
Orlando, FL4.0% cap rate
$385K median$1,920/mo rent0.89% tax2% growth
→
3
Kissimmee, FL4.0% cap rate
$385K median$1,920/mo rent0.88% tax2.8% growth
→
4
Chesapeake, VA4.0% cap rate
$365K median$1,790/mo rent0.82% tax0.9% growth
→
5
Daphne, AL4.0% cap rate
$365K median$1,690/mo rent0.42% tax0.8% growth
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6
Visalia, CA4.0% cap rate
$355K median$1,730/mo rent0.74% tax0.7% growth
→
7
Louisville, KY4.0% cap rate
$275K median$1,360/mo rent0.83% tax0.6% growth
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8
Ottawa, KS4.0% cap rate
$250K median$1,350/mo rent1.38% tax0.7% growth
→
9
Butte, MT3.9% cap rate
$275K median$1,320/mo rent0.76% tax1.5% growth
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10
Vineland, NJ3.9% cap rate
$270K median$1,650/mo rent2.18% tax0.3% growth
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11
Panama City, FL3.9% cap rate
$340K median$1,670/mo rent0.86% tax1.9% growth
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12
Springfield, MA3.9% cap rate
$360K median$1,900/mo rent1.22% tax0.1% growth
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13
Fernley, NV3.9% cap rate
$410K median$1,890/mo rent0.56% tax2.2% growth
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14
Waco, TX3.9% cap rate
$250K median$1,420/mo rent1.7% tax0.9% growth
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15
Dover, DE3.9% cap rate
$365K median$1,690/mo rent0.55% tax0.5% growth
→
16
Detroit, MI3.9% cap rate
$260K median$1,460/mo rent1.54% tax-0.1% growth
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17
St. Louis, MO3.9% cap rate
$265K median$1,400/mo rent1.24% tax0.1% growth
→
18
Michigan City, IN3.9% cap rate
$245K median$1,190/mo rent0.84% tax0.9% growth
→
19
Charleston, SC3.9% cap rate
$430K median$1,970/mo rent0.57% tax2.2% growth
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20
Wichita, KS3.9% cap rate
$215K median$1,160/mo rent1.41% tax0.5% growth
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21
Evansville, IN3.9% cap rate
$215K median$1,050/mo rent0.82% tax0.2% growth
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22
Clarksville, TN3.9% cap rate
$290K median$1,340/mo rent0.58% tax2% growth
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23
Naples, FL3.9% cap rate
$555K median$2,690/mo rent0.86% tax1.9% growth
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24
Bowling Green, KY3.9% cap rate
$260K median$1,250/mo rent0.8% tax1.2% growth
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25
Huntsville, AL3.8% cap rate
$310K median$1,380/mo rent0.43% tax2.4% growth
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26
Berlin, NH3.8% cap rate
$250K median$1,410/mo rent1.84% tax0.5% growth
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27
Jacksonville, FL3.8% cap rate
$345K median$1,670/mo rent0.86% tax1.7% growth
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28
Hagerstown, MD3.8% cap rate
$315K median$1,590/mo rent1.06% tax0.5% growth
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29
Rochester, NY3.8% cap rate
$265K median$1,500/mo rent1.72% tax-0.1% growth
→
30
Burlington, NC3.8% cap rate
$290K median$1,380/mo rent0.78% tax1.5% growth
→
31
Jamestown, NY3.8% cap rate
$165K median$930/mo rent1.71% tax0% growth
→
32
Lynchburg, VA3.8% cap rate
$280K median$1,340/mo rent0.8% tax0.5% growth
→
33
Pueblo, CO3.8% cap rate
$285K median$1,300/mo rent0.53% tax0.5% growth
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34
North Charleston, SC3.8% cap rate
$430K median$1,970/mo rent0.58% tax1.8% growth
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35
Jackson, MI3.8% cap rate
$215K median$1,160/mo rent1.46% tax0.3% growth
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36
St. Marys, GA3.8% cap rate
$305K median$1,500/mo rent0.93% tax0.9% growth
→
37
Sedalia, MO3.8% cap rate
$185K median$960/mo rent1.25% tax0.5% growth
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38
Russellville, AR3.8% cap rate
$195K median$900/mo rent0.61% tax0.9% growth
→
39
San Angelo, TX3.8% cap rate
$240K median$1,340/mo rent1.72% tax1.8% growth
→
40
Elko, NV3.8% cap rate
$355K median$1,600/mo rent0.56% tax2.2% growth
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41
Sidney, OH3.8% cap rate
$235K median$1,290/mo rent1.58% tax0.2% growth
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42
Atlanta, GA3.8% cap rate
$375K median$1,810/mo rent0.92% tax1.3% growth
→
43
Newport News, VA3.8% cap rate
$365K median$1,790/mo rent0.98% tax0.4% growth
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44
Champaign, IL3.8% cap rate
$225K median$1,310/mo rent2.04% tax0.5% growth
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45
Marietta, GA3.8% cap rate
$375K median$1,810/mo rent0.93% tax1.5% growth
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46
Athens, TN3.8% cap rate
$250K median$1,150/mo rent0.65% tax1.6% growth
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47
New Castle, IN3.8% cap rate
$185K median$880/mo rent0.84% tax0.9% growth
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48
Findlay, OH3.8% cap rate
$230K median$1,260/mo rent1.58% tax0.2% growth
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49
Show Low, AZ3.7% cap rate
$390K median$1,770/mo rent0.63% tax1.6% growth
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50
Hermiston, OR3.7% cap rate
$305K median$1,460/mo rent0.94% tax1% growth
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51
Rock Hill, SC3.7% cap rate
$385K median$1,720/mo rent0.56% tax2.2% growth
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52
Athens, GA3.7% cap rate
$360K median$1,730/mo rent0.9% tax1.2% growth
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53
Sikeston, MO3.7% cap rate
$160K median$820/mo rent1.25% tax0.5% growth
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54
Winchester, VA3.7% cap rate
$380K median$1,800/mo rent0.86% tax0.7% growth
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55
Rochester, MN3.7% cap rate
$330K median$1,620/mo rent1.1% tax1.2% growth
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56
Longview, TX3.7% cap rate
$210K median$1,160/mo rent1.72% tax1.8% growth
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57
Dixon, IL3.7% cap rate
$175K median$1,020/mo rent2.06% tax0.2% growth
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58
Cleveland, TN3.7% cap rate
$300K median$1,370/mo rent0.65% tax1.6% growth
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59
Norfolk, VA3.7% cap rate
$365K median$1,790/mo rent1.05% tax0.3% growth
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60
Las Cruces, NM3.7% cap rate
$285K median$1,340/mo rent0.8% tax0.8% growth
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61
Roanoke, VA3.7% cap rate
$290K median$1,370/mo rent0.84% tax0.3% growth
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62
Beatrice, NE3.7% cap rate
$190K median$1,020/mo rent1.62% tax0.7% growth
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63
Victoria, TX3.7% cap rate
$215K median$1,180/mo rent1.72% tax1.8% growth
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64
Frankfort, KY3.7% cap rate
$245K median$1,140/mo rent0.81% tax0.8% growth
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65
Faribault, MN3.7% cap rate
$340K median$1,660/mo rent1.12% tax0.5% growth
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66
Lexington, KY3.7% cap rate
$320K median$1,480/mo rent0.81% tax0.9% growth
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67
Bardstown, KY3.6% cap rate
$265K median$1,230/mo rent0.81% tax0.8% growth
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68
Easton, MD3.6% cap rate
$480K median$2,330/mo rent1.04% tax0.5% growth
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69
Akron, OH3.6% cap rate
$230K median$1,240/mo rent1.58% tax-0.2% growth
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70
Fayetteville, AR3.6% cap rate
$360K median$1,590/mo rent0.61% tax2.2% growth
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71
Kearney, NE3.6% cap rate
$295K median$1,570/mo rent1.62% tax0.7% growth
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72
Mount Pleasant, MI3.6% cap rate
$220K median$1,150/mo rent1.46% tax0.3% growth
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73
Atlantic City, NJ3.6% cap rate
$370K median$2,160/mo rent2.18% tax0.3% growth
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74
Carbondale, IL3.6% cap rate
$150K median$860/mo rent2.06% tax0.2% growth
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75
Corsicana, TX3.6% cap rate
$225K median$1,220/mo rent1.72% tax1.8% growth
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76
Merced, CA3.6% cap rate
$415K median$1,880/mo rent0.75% tax0.8% growth
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77
Fresno, CA3.6% cap rate
$405K median$1,840/mo rent0.76% tax0.8% growth
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78
Fort Leonard Wood, MO3.6% cap rate
$220K median$1,100/mo rent1.25% tax0.5% growth
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79
Bethlehem, PA3.6% cap rate
$350K median$1,770/mo rent1.36% tax0.3% growth
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80
Twin Falls, ID3.6% cap rate
$375K median$1,650/mo rent0.66% tax1.5% growth
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81
Stockton, CA3.6% cap rate
$525K median$2,360/mo rent0.74% tax0.6% growth
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82
Pahrump, NV3.6% cap rate
$355K median$1,530/mo rent0.56% tax2.2% growth
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83
Fort Wayne, IN3.5% cap rate
$250K median$1,150/mo rent0.85% tax0.7% growth
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84
Freeport, IL3.5% cap rate
$150K median$850/mo rent2.06% tax0.2% growth
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85
Allentown, PA3.5% cap rate
$350K median$1,770/mo rent1.38% tax0.3% growth
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86
Sevierville, TN3.5% cap rate
$395K median$1,740/mo rent0.65% tax1.6% growth
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87
Modesto, CA3.5% cap rate
$460K median$2,060/mo rent0.75% tax0.5% growth
→
88
Sioux City, IA3.5% cap rate
$215K median$1,120/mo rent1.54% tax0.1% growth
→
89
Gloversville, NY3.5% cap rate
$205K median$1,100/mo rent1.71% tax0% growth
→
90
Ann Arbor, MI3.5% cap rate
$405K median$2,040/mo rent1.48% tax0.8% growth
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91
Yuba City, CA3.5% cap rate
$425K median$1,890/mo rent0.75% tax0.8% growth
→
92
Concord, NC3.5% cap rate
$385K median$1,720/mo rent0.8% tax2% growth
→
93
College Station, TX3.5% cap rate
$305K median$1,620/mo rent1.72% tax1.8% growth
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94
Cincinnati, OH3.5% cap rate
$300K median$1,540/mo rent1.52% tax0.4% growth
→
95
Trenton, NJ3.5% cap rate
$430K median$2,500/mo rent2.25% tax-0.1% growth
→
96
Auburn, NY3.5% cap rate
$220K median$1,170/mo rent1.71% tax0% growth
→
97
Aberdeen, WA3.5% cap rate
$315K median$1,430/mo rent0.93% tax1.1% growth
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98
Lake Havasu City, AZ3.5% cap rate
$345K median$1,480/mo rent0.63% tax1.6% growth
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99
Davenport, IA3.5% cap rate
$185K median$950/mo rent1.52% tax0.1% growth
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100
Charlotte, NC3.5% cap rate
$385K median$1,720/mo rent0.83% tax2.3% growth
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101
Rockford, IL3.5% cap rate
$210K median$1,200/mo rent2.12% tax-0.2% growth
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102
Vernal, UT3.5% cap rate
$345K median$1,450/mo rent0.57% tax2% growth
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103
Philadelphia, PA3.4% cap rate
$375K median$1,860/mo rent1.36% tax0.2% growth
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104
Rio Rancho, NM3.4% cap rate
$340K median$1,500/mo rent0.76% tax1.2% growth
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105
Burley, ID3.4% cap rate
$330K median$1,400/mo rent0.64% tax2.6% growth
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106
Kalamazoo, MI3.4% cap rate
$265K median$1,340/mo rent1.46% tax0.3% growth
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107
El Centro, CA3.4% cap rate
$370K median$1,620/mo rent0.75% tax0.8% growth
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108
Baltimore, MD3.4% cap rate
$395K median$1,860/mo rent1.04% tax-0.2% growth
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109
Killeen, TX3.4% cap rate
$250K median$1,320/mo rent1.68% tax1.2% growth
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110
New Haven, CT3.4% cap rate
$390K median$2,020/mo rent1.65% tax0.1% growth
→
111
Asheville, NC3.4% cap rate
$415K median$1,760/mo rent0.64% tax1.5% growth
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112
Quincy, IL3.4% cap rate
$180K median$1,000/mo rent2.06% tax0.2% growth
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113
Albuquerque, NM3.4% cap rate
$340K median$1,500/mo rent0.78% tax0.6% growth
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114
Redding, CA3.4% cap rate
$365K median$1,590/mo rent0.75% tax0.8% growth
→
115
New Bedford, MA3.4% cap rate
$310K median$1,480/mo rent1.2% tax0.2% growth
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116
Big Rapids, MI3.4% cap rate
$215K median$1,080/mo rent1.46% tax0.3% growth
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117
Norfolk, NE3.4% cap rate
$245K median$1,250/mo rent1.62% tax0.7% growth
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118
Pinehurst, NC3.4% cap rate
$410K median$1,790/mo rent0.78% tax1.5% growth
→
119
Erie, PA3.4% cap rate
$210K median$1,050/mo rent1.4% tax-0.4% growth
→
120
Crescent City, CA3.4% cap rate
$360K median$1,560/mo rent0.75% tax0.8% growth
→
121
Sulphur Springs, TX3.4% cap rate
$255K median$1,330/mo rent1.72% tax1.8% growth
→
122
Grand Junction, CO3.4% cap rate
$420K median$1,720/mo rent0.51% tax1.3% growth
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123
The Villages, FL3.4% cap rate
$385K median$1,700/mo rent0.86% tax1.9% growth
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124
Crestview, FL3.4% cap rate
$435K median$1,920/mo rent0.86% tax1.9% growth
→
125
Houston, TX3.4% cap rate
$305K median$1,620/mo rent1.81% tax1.5% growth
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126
Lewiston, ME3.3% cap rate
$315K median$1,510/mo rent1.28% tax0.1% growth
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127
Brookings, SD3.3% cap rate
$310K median$1,450/mo rent1.2% tax1.4% growth
→
128
Kingston, NY3.3% cap rate
$425K median$2,210/mo rent1.71% tax0% growth
→
129
Tullahoma, TN3.3% cap rate
$310K median$1,310/mo rent0.65% tax1.6% growth
→
130
Springfield, MO3.3% cap rate
$265K median$1,250/mo rent1.18% tax0.6% growth
→
131
Athens, TX3.3% cap rate
$265K median$1,370/mo rent1.72% tax1.8% growth
→
132
Marshalltown, IA3.3% cap rate
$185K median$920/mo rent1.51% tax0.4% growth
→
133
Riverside, CA3.3% cap rate
$580K median$2,480/mo rent0.78% tax1.2% growth
→
134
Bloomsburg, PA3.3% cap rate
$240K median$1,170/mo rent1.38% tax0.2% growth
→
135
Tucson, AZ3.3% cap rate
$340K median$1,450/mo rent0.72% tax1.2% growth
→
136
Salisbury, MD3.3% cap rate
$415K median$1,890/mo rent1.04% tax0.5% growth
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137
Moses Lake, WA3.3% cap rate
$355K median$1,560/mo rent0.93% tax1.1% growth
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138
Richmond, VA3.3% cap rate
$385K median$1,660/mo rent0.82% tax1.1% growth
→
139
Lewiston, ID3.3% cap rate
$360K median$1,480/mo rent0.64% tax2.6% growth
→
140
Traverse City, MI3.3% cap rate
$400K median$1,970/mo rent1.46% tax0.3% growth
→
141
Brevard, NC3.3% cap rate
$465K median$1,990/mo rent0.78% tax1.5% growth
→
142
Staunton, VA3.3% cap rate
$320K median$1,390/mo rent0.86% tax0.7% growth
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143
Jamestown, ND3.3% cap rate
$225K median$1,000/mo rent0.98% tax1% growth
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144
Zanesville, OH3.3% cap rate
$200K median$1,010/mo rent1.58% tax0.2% growth
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145
San Bernardino, CA3.3% cap rate
$580K median$2,480/mo rent0.76% tax0.4% growth
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146
Grand Island, NE3.3% cap rate
$250K median$1,250/mo rent1.6% tax0.4% growth
→
147
Crawfordsville, IN3.3% cap rate
$215K median$930/mo rent0.84% tax0.9% growth
→
148
North Vernon, IN3.3% cap rate
$220K median$950/mo rent0.84% tax0.9% growth
→
149
Spring Hill, TN3.2% cap rate
$445K median$1,780/mo rent0.54% tax4.5% growth
→
150
Charlottesville, VA3.2% cap rate
$455K median$1,960/mo rent0.86% tax0.7% growth
→
151
Reading, PA3.2% cap rate
$300K median$1,460/mo rent1.42% tax0.1% growth
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152
Henderson, NV3.2% cap rate
$430K median$1,720/mo rent0.53% tax2.5% growth
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153
Worcester, MA3.2% cap rate
$465K median$2,120/mo rent1.18% tax0.6% growth
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154
Grand Rapids, MI3.2% cap rate
$345K median$1,640/mo rent1.38% tax1.1% growth
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155
Muskegon, MI3.2% cap rate
$240K median$1,170/mo rent1.46% tax0.3% growth
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156
Lock Haven, PA3.2% cap rate
$190K median$910/mo rent1.38% tax0.2% growth
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157
Buffalo, NY3.2% cap rate
$270K median$1,370/mo rent1.69% tax0.1% growth
→
158
Adrian, MI3.2% cap rate
$230K median$1,120/mo rent1.46% tax0.3% growth
→
159
Ca, CO3.2% cap rate
$335K median$1,330/mo rent0.51% tax1.3% growth
→
160
Independence, MO3.2% cap rate
$315K median$1,480/mo rent1.28% tax0.3% growth
→
161
Red Bluff, CA3.2% cap rate
$315K median$1,320/mo rent0.75% tax0.8% growth
→
162
Keene, NH3.2% cap rate
$375K median$1,910/mo rent1.84% tax0.5% growth
→
163
Plymouth, IN3.2% cap rate
$250K median$1,070/mo rent0.84% tax0.9% growth
→
164
Bloomington, IL3.2% cap rate
$250K median$1,330/mo rent2.02% tax0.3% growth
→
165
Murfreesboro, TN3.2% cap rate
$445K median$1,780/mo rent0.55% tax2.5% growth
→
166
Grand Forks, ND3.2% cap rate
$265K median$1,170/mo rent1% tax0.5% growth
→
167
Overland Park, KS3.2% cap rate
$315K median$1,480/mo rent1.38% tax1.2% growth
→
168
Augusta, ME3.2% cap rate
$305K median$1,420/mo rent1.3% tax0.3% growth
→
169
Canton, OH3.2% cap rate
$205K median$1,030/mo rent1.58% tax-0.3% growth
→
170
Tyler, TX3.2% cap rate
$265K median$1,340/mo rent1.72% tax1.8% growth
→
171
Somerset, PA3.2% cap rate
$170K median$810/mo rent1.38% tax0.2% growth
→
172
Las Vegas, NV3.2% cap rate
$430K median$1,720/mo rent0.55% tax2.2% growth
→
173
Kansas City, MO3.2% cap rate
$315K median$1,480/mo rent1.32% tax0.8% growth
→
174
Nashville, TN3.2% cap rate
$445K median$1,780/mo rent0.56% tax1.6% growth
→
175
North Las Vegas, NV3.2% cap rate
$430K median$1,720/mo rent0.56% tax2.8% growth
→
176
Elkhart, IN3.2% cap rate
$255K median$1,080/mo rent0.84% tax0.9% growth
→
177
State College, PA3.2% cap rate
$340K median$1,610/mo rent1.38% tax0.2% growth
→
178
Ukiah, CA3.2% cap rate
$495K median$2,050/mo rent0.75% tax0.8% growth
→
179
Vallejo, CA3.2% cap rate
$575K median$2,380/mo rent0.75% tax0.8% growth
→
180
Gainesville, GA3.2% cap rate
$385K median$1,670/mo rent0.93% tax0.9% growth
→
181
Winona, MN3.1% cap rate
$275K median$1,220/mo rent1.12% tax0.5% growth
→
182
Casper, WY3.1% cap rate
$305K median$1,220/mo rent0.61% tax0.8% growth
→
183
Lewisburg, PA3.1% cap rate
$280K median$1,320/mo rent1.38% tax0.2% growth
→
184
Marinette, WI3.1% cap rate
$195K median$1,000/mo rent1.88% tax0.5% growth
→
185
San Antonio, TX3.1% cap rate
$275K median$1,390/mo rent1.72% tax1.4% growth
→
186
Kerrville, TX3.1% cap rate
$360K median$1,800/mo rent1.72% tax1.8% growth
→
187
Bellefontaine, OH3.1% cap rate
$240K median$1,180/mo rent1.58% tax0.2% growth
→
188
Cedar Rapids, IA3.1% cap rate
$235K median$1,120/mo rent1.48% tax0.4% growth
→
189
Fredericksburg, VA3.1% cap rate
$570K median$2,330/mo rent0.76% tax1.5% growth
→
190
Columbia, MO3.1% cap rate
$310K median$1,400/mo rent1.22% tax0.8% growth
→
191
Sherman, TX3.1% cap rate
$285K median$1,420/mo rent1.72% tax1.8% growth
→
192
Midland, TX3.1% cap rate
$325K median$1,580/mo rent1.59% tax2.2% growth
→
193
Hartford, CT3.1% cap rate
$380K median$1,890/mo rent1.68% tax-0.2% growth
→
194
Kill Devil Hills, NC3.1% cap rate
$590K median$2,430/mo rent0.78% tax1.5% growth
→
195
Niles, MI3.1% cap rate
$265K median$1,260/mo rent1.46% tax0.3% growth
→
196
Hutchinson, MN3.1% cap rate
$285K median$1,250/mo rent1.12% tax0.5% growth
→
197
Cheyenne, WY3.1% cap rate
$380K median$1,500/mo rent0.61% tax0.8% growth
→
198
Fallon, NV3.1% cap rate
$380K median$1,480/mo rent0.56% tax2.2% growth
→
199
Hilton Head Island, SC3.1% cap rate
$515K median$2,020/mo rent0.57% tax1.9% growth
→
200
Harrisburg, PA3.1% cap rate
$300K median$1,410/mo rent1.4% tax0.1% growth
→
201
Minneapolis, MN3.1% cap rate
$380K median$1,660/mo rent1.12% tax0.6% growth
→
202
Riverton, WY3.1% cap rate
$310K median$1,220/mo rent0.61% tax0.8% growth
→
203
Montrose, CO3.1% cap rate
$485K median$1,860/mo rent0.51% tax1.3% growth
→
204
Bloomington, MN3.1% cap rate
$380K median$1,660/mo rent1.14% tax0.3% growth
→
205
Chico, CA3.1% cap rate
$395K median$1,600/mo rent0.75% tax0.8% growth
→
206
Newport, OR3.1% cap rate
$465K median$1,950/mo rent0.94% tax1% growth
→
207
Durham, NC3.1% cap rate
$405K median$1,650/mo rent0.8% tax1.8% growth
→
208
Scottsdale, AZ3.0% cap rate
$445K median$1,720/mo rent0.58% tax1.4% growth
→
209
Grants Pass, OR3.0% cap rate
$380K median$1,590/mo rent0.94% tax1% growth
→
210
Eugene, OR3.0% cap rate
$450K median$1,900/mo rent0.98% tax0.6% growth
→
211
Fort Morgan, CO3.0% cap rate
$320K median$1,220/mo rent0.51% tax1.3% growth
→
212
The Dalles, OR3.0% cap rate
$390K median$1,630/mo rent0.94% tax1% growth
→
213
Burlington, VT3.0% cap rate
$455K median$2,140/mo rent1.59% tax0.3% growth
→
214
California, MD3.0% cap rate
$420K median$1,810/mo rent1.04% tax0.5% growth
→
215
Mankato, MN3.0% cap rate
$300K median$1,300/mo rent1.12% tax0.5% growth
→
216
St. Paul, MN3.0% cap rate
$380K median$1,660/mo rent1.15% tax0.4% growth
→
217
Gilbert, AZ3.0% cap rate
$445K median$1,720/mo rent0.6% tax2% growth
→
218
Kapaa, HI3.0% cap rate
$1.0M median$3,590/mo rent0.28% tax0.2% growth
→
219
Cedar City, UT3.0% cap rate
$405K median$1,550/mo rent0.57% tax2% growth
→
220
Lowell, MA3.0% cap rate
$715K median$3,100/mo rent1.15% tax0.4% growth
→
221
Meadville, PA3.0% cap rate
$165K median$760/mo rent1.38% tax0.2% growth
→
222
Surprise, AZ3.0% cap rate
$445K median$1,720/mo rent0.6% tax2.5% growth
→
223
Colorado Springs, CO3.0% cap rate
$450K median$1,690/mo rent0.49% tax1.8% growth
→
224
Cape Girardeau, MO3.0% cap rate
$225K median$1,010/mo rent1.25% tax0.5% growth
→
225
Great Falls, MT3.0% cap rate
$330K median$1,330/mo rent0.76% tax0.3% growth
→
226
Chandler, AZ3.0% cap rate
$445K median$1,720/mo rent0.61% tax1.8% growth
→
227
Truckee, CA3.0% cap rate
$600K median$2,400/mo rent0.75% tax0.8% growth
→

By Region

South (71)
Midwest (66)
West (57)
Northeast (33)

3% – 4% Cities by State

California (16)Texas (15)Michigan (12)Pennsylvania (12)Virginia (10)Missouri (9)Indiana (8)Tennessee (8)North Carolina (8)Minnesota (8)Florida (7)Nevada (7)Ohio (7)Illinois (7)Arizona (7)New York (6)Colorado (6)Kentucky (5)Maryland (5)Georgia (5)Oregon (5)Massachusetts (4)South Carolina (4)Nebraska (4)Iowa (4)Kansas (3)New Jersey (3)New Mexico (3)Idaho (3)Wyoming (3)Alabama (2)Montana (2)New Hampshire (2)Arkansas (2)Washington (2)Utah (2)Connecticut (2)Maine (2)North Dakota (2)Delaware (1)South Dakota (1)Wisconsin (1)Vermont (1)Hawaii (1)

Frequently Asked Questions

What does a 3% – 4% cap rate mean?
A cap rate 3% – 4% means the property generates relatively low income compared to price. Investors in this range typically focus on appreciation and equity growth rather than current cash flow.
Are 3% – 4% cap rate cities a good investment?
These markets are better suited for appreciation-focused strategies. Cash flow is tight at median prices, so consider house hacking, value-add approaches, or targeting below-median properties.
How many US cities have 3% – 4% cap rates?
CapRateCity tracks 227 US cities with cap rates in the 3% – 4% range. The South has the most cities in this tier (71), followed by the Midwest (66). California leads with 16 cities.
What is a good cap rate for rental property?
It depends on your strategy. Above 6% is generally considered strong for cash flow. 4-6% is moderate and workable with good financing. Below 4% is challenging for cash flow but may offer superior appreciation. The national average across 300+ cities we track is 3.81%. The "best" cap rate balances yield with market quality, growth, and risk.

Related Rankings

Highest Cap Rate Cities →Best Cash Flow Cities →Cheapest Rental Markets →Fastest Growing Markets →Lowest Property Tax Cities →Best BRRRR Cities →
The CapRateCity Report
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